Thanks for your sms.

Went there but was told system down for ASM.

So will have to wait till 6 April. Weird ASNB system!

ASNB

Then PM.

Then the ASNB staff should really go for better training in doing her job.

I did ask whether this system down thing was to reduce the queue. She said no.

Wah, congratulations!

So how many juta you put in today?

Will call ASNB tomorrow to confirm the "gate" is opened before I go. Ha.

I know your life philosophy and life slogan -

. . . . . . . The Quiet Achiever!!!

Follow up from my frustrating experience yesterday.

Called the ASNB here. Initially I was told that I could not buy ASM due to system upgrading. I explained the ASNB memo on ASN (1-5 Apr) and ASX (5 Apr). Then she said with the system upgrading, it would be slow in getting ASM.

First it is this, later that. Reminds me of MAS (Mana Ada System)!

Asked about going to banks and was told it would be the same with the slow speed.

Giving up. Now they don't deserve the title of being the branch with the highest ASX transactions in Malaysia! Ha.

Bad news!

I think for the fixed price ASX, the impact will be minimum as there is no sales charge etc.

Only the management fees, trustee fees, etc. 6% of these fees will go to govt and thereby increasing these operating costs by 6%?

Cheerio.

I did a quick check using AS1M annual report on the impact of GST on mgt fee.

The extra 6% on mgt fee equates to about 1% drop in nett profit and a drop of about 0.1% in dividend rate.

I think the overall dividend rate drop will be more than 0.1% due to the 6% GST on other operating costs.

Hope it will not set back by more than 0.2% when compared with before GST.

My 2 cents.

Problem is I am in an under developed town where I still do not know which banks here have upgraded their system for ASM (except ASNB but they raised the you-know-what excuse).

KFC for ASNB? I will be seeing IXP for all-encompassing "sedation" charge. Ha.

I think they misread ASNB's 2 memos on ASN and ASX system down dates.

Or they take the easier way out by saying it is for ALL ASX?

My drive for this is getting less and less now. Ha.

My salute to you for standing up for your right!

CONGRATULATIONS!

Mind describing what is the car boot organiser?

The above sounds too good to be true initially at 7+% return!

On second look, the effective rate is (7.8 + 2.2)/2 = 5%. Better than any 6 months FD out there.

Cheerio.

I see. Then how much did you pay per unit?


Cheerio.

Went to ASNB today. 30 to go as per my queue no. So went for a walkabout and went to CIMB nearby. Asked whether they have upgraded their computer system for ASM. Surprised to hear that they are still waiting for their staff ID number to access the system. Asked for how long now and she said for 5 months. True? I thought I used their system for ASM 5 months ago before the passbook change. Different world we live in or my memory is really failing me. Ha.

Anyway, went back to ASNB. After an hr wait, my turn and managed to get 1k + 3.5K ASM for my son. Think there is some more. Go and try your luck!

This post has been edited by plumberly: Apr 8 2015, 02:43 PM

My view is, it is simply because its return (~6%) is higher than FD (~3.6%) for more or less the same risk (except that ASX do not have PIDM guarantee).

With some effort and trying, one can get nearly twice the return. So why not?

Cheerio.

Under water?

With advancement in technology, we have submarine, stealth fighter, etc.

NOW .... underwater XXX?

Sorry for pulling your leg here. Cannot help it when I see "underwater". Ha.

With improvement in global economy market, your ASG will be like the next SATURN V rocket!

Cheerio.

My 2 sons already have their ASM many years ago, thanks to their mum for doing that.

Only my daughter does not have one. May try that tomorrow. Plan to go there later in the day with the change of staff. One group is certainly more friendly and helpful. So hopefully I can open one for my daughter.

Cheerio.

Yes, I have now a black belt qualification in the under XXX dept. Ha.

Yes, as mentioned by MGM, the dividends are calculated based on the monthly minimum. I have shared a spreadsheet here on ASX dividend calcs some time ago. Calculated dividend from my spreadsheet is the same as what I got in the book to the cent.

We lose out on some dividend due to this monthly rest thing when compared with FD. But the higher ASX dividend rate compensates and in fact most of the time, exceeds the FD return. I will try to show a graph later. Graph tells a better story than a table of numbers, in my view.

Cheerio.

As promised earlier, my comparison (mainly due to the fact that ASM deposit in the first month does not earn any dividend) between FD and ASM is as below .

Assumptions:
* 1 month FD at 3.6% pa
* compounded monthly FD dividends
* ASM at 6.5% pa
* ASM monthly dividend is not compounded
* amount RM500,000



If my calculations are right, the above tells me that it is better on first look (see note #1) to put the money in FD if it is 1 month before the ASM dividend date. You will get some $ from FD while zero from ASM.

The breakeven point is 2 months before ASM dividend date where FD & ASM will give you about the same amount.

BUT ...

I am more than willing to lose out on the 1 month FD interest since ASM gives more than FD for the other cases (note #1), i.e., overall higher return.

My 2 cents.

Cheerio.